UPDATE: Deutsche Bank Cuts PT to $15 on Groupon; Reduces Estimates Post Q1

Deutsche Bank lowers its price target on Hold-rated Groupon

from $21 to $15 as it cuts estimates despite a strong Q1 for the company. Deutsche Bank notes, "We reduce our PF operating income ests on Groupon despite solid headline 1Q results. Despite strong net revs and lower marketing expense, much of the profit beat came from lower marketing that we see as less likely to continue. Coming in at 21% of net revs, in line with mgmt's long-term goal of 20%, we assume marketing expense grows from here. In addition, COGS continues to grow faster than net revenues (potentially as a result of higher refund accruals) and SG&A came in much higher than our ests. We increase net revs but reduce PF operating income and maintain our Hold rating on the shares." GRPN closed at $11.63 on Monday.